US producer prices rose 1.3 percent in September

The US final-demand producer price index rose a seasonally adjusted 1.3 percent in September from August, following a 0.5 percent increase in the previous month. The BLS release of 15 October reported an unadjusted annual increase of 6.3 percent. The US pricing environment can matter to Hungarian suppliers and importers through their contractual pricing.

The indicator tracks selling prices received by US domestic producers within final demand. It uses a different basket and economic perspective from the consumer price index, which examines household purchases. Combining the two figures into a common inflation average is therefore inappropriate, and the monthly change should not be read as an annual rate.

A Hungarian company’s actual cost depends not only on the product price but also on the dollar’s movement against the forint, transport and contractual repricing rules. Higher US producer prices cannot imply a uniform Hungarian price increase: supply-chain and exchange-rate effects can differ between companies.

Our report on US consumer inflation presents the household perspective, while the earlier EU producer-price figures describe another geographical market. The BLS lists its next producer-price release, covering October, for 13 November at 8:30 New York time; the new data will help assess the persistence of price pressures.